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USING IN-STORE BEHAVIOR

Using In-Store Behavior Analytics to Bridge the Gap Between Surveys and Sales

Secondary products displays and end caps are essential elements of a shopping experience. They are considered to be highly significant for product producers to be distinct and reach out to bustling in-store shoppers. Moreover, they are also the area where out-of-store marketing converges in-store marketing. So far whilst manufacturers and retailers have shown the positive influence of displays and examined the effect of pricing on shopper behavior, there is a shortage of data-driven observations on good details of display activity:

  • What is the ideal design and content for a display?
  • The best placement for a given display?
  • What sort of displays possess a high level of stopping power?
  • What aspects are more or less impactful on consumers who are making a purchasing decision?
  • In light of the Covid-19 pandemic, the present retail environment is continuously and rapidly transforming. Therefore, tackling such questions with factual insights will generate enhanced performance for both; manufacturers and retailers alike.

    For instance:

    Following the pandemic, the shopping time in grocery stores immediately dropped over 10% across all categories, thus, clearly indicating how external (outside) factors can influence shopper behavior in-store and where and when they are they are receptive to influence. In-store behavior analytics can bridge these gaps:

  • Between preference and purchasing decision
  • Between a shopper and consumer
  • Between a shopper and buyer
  • How:

    By directly and unnoticeably measuring shoppers at the decisive moment.

    Aim:

    To show what matters most to shoppers at the point where they vote with their wallets, without the need to depend on their honesty or reliability.

    Skips Crucial Points

    Conventional market research methods, surveys and focus groups, for example, are good at monitoring consumer attitudes. Such information is usually associated with sales data (which monitors market factors). However, going directly from preference to sales indicates that you only understand what goes on inside the store itself. Nevertheless, with more than 70% of purchasing decisions said to have been made in-store, simply deducing in-store behavior skips the crucial points of likely influence for most shoppers. Moreover, direct methods like, shopper intercepts or shop-alongs can be lacking, due to shoppers acting differently when they are being watched. At times, they simply may not be able to recall the precise details of their shopping that are required to give good data.

    Reach Shoppers

    Displays are amongst the most direct in-store applications when it comes to shopper marketing. It is one area where any retailer/product maker/brand can reach out to shoppers in-store on their own terms. Additionally, displays provide a number of uses in grocery stores including; encouragement of spontaneous purchases, reminder to shoppers about a product later on in their shopping trip, promoting the finding of latest products and providing for bargain-seeking shoppers. All these behaviors work to make baskets without necessarily disassembling primary aisles for these categories, bringing about a win-win situation for manufacturers and retailers.

    Three Standards

    Three standards direct total display performance; inclusive of additional sales created by the display and the display’s power to drive traffic to the main stocking place of the displayed categories; to evaluate the value of the display in its place. The three standards include:

    1) Rate of exposure

    Measures the number of traffic passing a specific location relative to total traffic of the store. This standard can be used to contrast locations in a store to decide which ones get more traffic.

    3) Relative directional traffic flow

    Measures the amount of a location’s traffic approaching another particular location. This standard can be used to find out the traffic dynamics with regards to the promoted product’s main location or even a complementing product/category. For example: A display of salsa can be used to inspire shoppers to visit ABC brand display having tortilla chips (complementary item).

    Based on Myths

    According to research, a display location can influence its performance by approximately 600%. Despite that, assigning display locations to certain promotions is usually based on folklore, not on facts and figures. There are two significant additions to the industry’s perception of display location performance: - Some display locations are essentially more valuable as compared to others - Display performance relies on stocking locations of the displayed products In the absence of research backed by data, manufacturers are just assuming the ideal location for their display and retailers are simply predicting the value of their display spaces.

    Location Best Practices

    Manufacturers and retailers need to examine the efficiency of different display locations utilizing in-store behavior analytics as well as proposing substitutes to current display ideas. The end return: A set of location best practices that can be widely implemented by the sales group when bargaining trade marketing. For instance; to assist a new product’s launch, a manufacturer might opt for an endcap on the main category aisle to emphasize the new product to loyal customers. Alternatively, setting up a secondary display in high-traffic location or close to a complementary item might also prove to be fruitful.

    Nearer to Accurate Motives

    In-store behavior analytics can offer insights that are required to improvise the decision-making procedure by joining sales trends with in-store behavior analytics that measure the flow of traffic and at-shelf behaviors of actual shoppers. The above data then powers research that can be utilized to establish rules for best practices to be used in enhancing displays across several stores or retailers

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